Pipelines – Bridging the Gap S.K. SATIJA General Manager Indian Oil Corporation Limited STRUCTURE OF PRESENTATION Historical Perspective – Oil Pipelines Pipeline Infrastructure in India Technological Developments Modewise Transportation of Petroleum Products New Pipelines – bridging Gap Present Industry Scenario- Critical Aspects History of Oil Pipelines First trunk pipeline dates back to 1870s Long distance pipeline transportation got a boost during World War-II when coastal tanker traffic was disrupted in U.S History of Oil Pipelines Discoveries of giant oil fields in remote parts of the world led to development of correspondingly large crude oil pipeline networks Pipeline industry has grown in parallel with the development of world oil industry over the last one century Growth of Pipelines in India First crude oil pipeline in India laid from Digboi oil fields to Digboi refinery before independence During 1960-63, Oil India Limited laid 1156 km long first trunk crude oil pipeline, from Naharkatiya and Moran oil fields to the refineries at Guwahati and Barauni IndianOil laid its first cross country product pipeline during 1962-64 to transport products from Guwahati refinery to Siliguri Growth of Pipelines in India Government & Industry started realizing unique advantages of oil transportation through pipelines Subsequently, a number of product and crude oil pipelines were laid in the 60’s, 70’s and 80’s, including sub-sea crude oil pipelines This led to development of this industry, especially during last two decades Growth of Pipelines in India The pipelines laid during the 60’s were designed, engineered constructed by foreign companies. However, the exposure to technology enabled Indian engineers to gain confidence, and pipelines which came up later, were designed and constructed indigenous expertise and this the with India today has over 22500 km of major crude oil and product pipelines out of which IOCL owns & operates more than 11,000 km of Pipelines Drivers for Growth of Pipelines in India Low consumption of petro products in the initial years post independence due to subdued economic growth Early refineries in India installed at coastal locations requiring only coastal movement of crude oil Refining capacities being low, products were either consumed locally or transported to the consumption centres by rail or road Drivers for Growth of Pipelines in India Traditionally rail network has been quite widespread in India. Pipelines relatively came into focus quite late After 1960, most of the refineries came up at land-locked locations necessitating laying of crude and product pipelines. Typical Advantages of Pipelines Lower cost of transportation about 30-50% of the railway freight and 4 to 5 times cheaper than road transportation Lower transit losses PL- 0.05% Max., Railway0.25%, Road0.5% Energy efficient Railway mode consumes 34 times and road mode about 20 times more energy than Pipeline mode Safety and Reliability minimum disruptions Environment friendly 3-4 times lesser Carbon emissions than Railway mode Existing Liquid Pipelines : Industry As on 1.12.2012 IOCL BPCL# HPCL## GAIL OIL ONGC ### Cairn Total Industry Length (Kms.) Product 6632 1939 2776 1691 654 - - 13692 Crude Oil 4376 935 1017 - 1193 676 667 8864 Total 11008 2874 3793 1691 1847.3 676 667 22556 Capacity (MMTPA) Product 36.86 10.35 22.27 3.6 1.70 - - 74.78 Crude Oil 40.40 6.0 9.0 - 8.40 43.84 7.5 115.1 Total 77.26 16.35 31.27 3.6 10.1 43.84 7.5 189.88 #Includes Petronet Cochin-Coimbatore-Karur Product pipeline Petronet Mangalore-Hassan-Bangalore Product Pipeline ### Source: PPAC ##Includes IOCL’s Existing Pipeline Network Jalandhar Bhatinda Sangrur Panipat Ambala Roorkee Najibabad Meerut Delhi Rewari Mathura Sanganer Tundla Ajmer Chaksu Bharatpur Lucknow Jodhpur Barauni Kanpur Kot Chittaurgarh Sidhpur Ahmedabad Mundra Kandla Vadinar Dahe j Navagam Tinsukia Bongaigaon Siliguri Guwahati Digboi Rajbandh Mourigram Koyali Ratlam Haldia Hazira Paradip as on 1.12.2012 Pipeline Product Crude Total Gas Length (km) 6632 4376 11008 132 Capacity (MMTPA) 36.86 40.40 77.26 9.5 MMSCMD Chennai Bangalore Bangalore AFS Sankari Chennai AFS Asanur CBR Trichy Madurai LEGEND Product Crude Oil Gas Refinery 12 Oil Pipelines Industry Scene Jalandhar Ambala Roorkee Sangrur Najibabad Panipat Meerut Nahorkatiya Tinsukia Delhi Rewari Loni Sanganer MathuraShahjahanpurSiliguriBongaigaon Digboi Ajmer Jodhpur Numaligarh Chaksu Tundla/B’Pur Lucknow Kanpur Guwahati Jagdishpur Kot Chittaurgarh Barauni Sidhpur Ahmedabad Rajbandh Kandla Ratlam Navagam Budge Mundra Jamnagar Maurigram Budge Koyali Indore Vadinar Dahej Ankleshwar Haldia Bhatinda Hazira Mumbai High Uran Manmad Mumbai Pune Secunderabad Paradip Vizag HazarwadiPakni Vijayawada Mangalore Bangalore Chennai Sankari Asanur Karur Coimbatore Trichy Kochi Madurai IOC’s Pipelines (Existing) Product Crude Oil Other Companies’ Pipelines(Existing) Product Crude Oil LPG Technological Developments Improvement in Piping Specifications - API 5L- X70 grades pipelines allows reduction in thickness of pipeline/ number of pump stations Intelligent Pigging - To ascertain integrity of pipeline without disrupting operations Horizontal Directional Drilling – Easy to cross major rivers; Crossing highways, Railways etc. without causing traffic obstructions Supervisory Control and Data Acquisition System - SCADA applications allows better control and operation of pipeline system with less human intervention requirements Leak Detection System Modewise Transportation-Tonne-Km Basis India Coastal 22% USA Pipeline 48% Coastal 22% Rail Road 3% 4% Road 15% Rail 15% (Source: PPAC 2010-11) Pipeline 71% (Source : Association of Oil Pipelines, USA) IOC - Projects under Implementation S. No. Projects’ Description Length (km) Cap. (MMTPA) Cost (Rs. Cr.) 1. Hook-up of Tikrikalan Terminal with MJPL 8 3.0 59 2. Addl. Tanks & blending facility at Vadinar - - 267 3. Integrated Crude Handling Facilities at Paradip 70 - 1492 4. Paradip- Raipur-Ranchi Pipeline 1065 5.0 1793 5. Kolkata ATF Pipeline 28 0.13 45 6. Guwahati ATF Pipeline 35 0.07 44 7. Debottlenecking of SMPL 767 21 to 25 1584 8. Cauvery Basin Refinery-Trichy Pipeline 114 0.4 98 9. Paradip-Haldia-Durgapur LPG PIpeline 710 0.5/0.85 913 10. Aug. of Paradip-Haldia-Barauni Pipeline 64 11.0 to 15.2 586 11. Hook up of Jasidih ToP with HBPL - - 14.2 12. Aug of Panipat-Rewari Pipeline - 1.5 to 2.1 5.94 13. Branch Pipeline to Motihari and Baitalpur 275 1.5 276 Total 3136 19.75 7177.14 Product Pipelines – Bridging the Gap S. No. Pipeline Name Oil Company Length (km) Capacity (MMTPA) Capex (Rs. Cr.) 1. Hook-up of Tikrikalan terminal with Mathura - Jalandar PL IOC 8 3.0 59 2. Branch PL from Viramgam to Kandla off Koyali-Sanganer PL IOC 231 0.5 349 3. Augmentation of Trichy-Madurai PL Chennai- IOC - 0.5 46 4. Paradip - Vizag-RajamundaryVijaiwada-Cherllapally PL IOC 1200 3.7 2000 5. Koyali-Akolner PL IOC 600 2.5 660 6. Branch pipeline to RaxualBaitalpur (ex-Patna on Barauni Kanpur PL) IOC 275 1.2 305 7. Aonla-Banthra extension Mathura - Tundla PL of IOC 500 1.0 200 8 Paradip - Sambalpur – Raipur Ranchi PL IOC 1068 5.0 1793 Product Pipelines – Bridging the Gap S. No. Pipeline Name Oil Company Length (km) Capacity (MMMTPA) Capex (Rs. Cr.) 9 Branch line to Una on PanipatAmbala-Jalandar PL IOC 70 0.7 101 10 Cauvery Basin Refinery/ Narimanam-Trichy PL IOC 114 0.4 98 11 Bina-Kota PL BPC 258 2.8 1398 12 Kota-Jobner PL BPC 210 1.7 - 13. Kota-Piyala PL(Augmentation) BPC 200 1.0 200 14. Ramanmandi-Bahadurgarh PL HPC 270 4.7 400 15. Ramanmandi-Bhatinda PL HPC 30 1.4 61 16. Bahadurgarh-Tikri Kalan PL HPC 13 1.1 60 17. Rewari-Kanpur PL HPC 450 3.0 1100 18. Awa-Salawas PL HPC 100 0.8 200 5597 34.9 9030 Total Present Industry Scenario: Critical Aspects National Oil Companies facing acute fiscal challenges due to prevailing norms on product pricing and fund crunch for their expansion Statutory Clearances have become more complex; Projects are getting delayed on this account Land Acquisition Problems 20